Production of graphite electrodes was estimated to reach about 1,000,000
tons in 50 regions around the world (as of 1998), of which the respondents’
combined total of production accounted for approximately 80% of the supply
(31% by UCAR International Inc., 25% by SGL Carbon Aktiengesellschaft,
and 24% by the remaining four Japanese companies, according to an internal
report by SGL Carbon in November 1996). Graphite electrodes are also
produced in China and India, but their quality is relatively poor compared to
the respondents’ products.
Since Korea does not have any domestic graphite electrode manufacturers, it
must depend solely on imports. Korean demand is estimated to constitute
approximately 4% of the worldwide demand.
Most Korean companies importing graphite electrodes receive price
proposals from multiple manufacturers and sign annual purchase contracts
through negotiations based on the lowest price proposed.
2. Findings